CAIE IGCSE Business Studies 1.5 business and stakeholder objectives
Use this objectives-and-stakeholders page to identify aims, explain stakeholder effects and judge conflicts using case evidence.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- State business objectives such as survival, profit, growth, cash flow or market share.
- Explain how stakeholders such as customers, banks or communities are affected by decisions.
- Apply stakeholder conflict or objective changes to the named business situation.
Covered syllabus points
1.5. Business objectives and stakeholder objectives question 1
[Maximum number: 4]
TCH is a small bakery producing pastries and cakes. It operates in the secondary sector. The added value of TCH's products has increased since it opened 3 years ago. TCH uses non-financial methods to motivate its 6 employees. TCH's business objectives have changed since it started up. One of its new objectives is to expand. Many businesses use external recruitment when they expand.
Outline two reasons why TCH's business objectives might have changed.
Reason 1:
Reason 2:
Award 1 mark for each relevant reason (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Points might include:
- Previous objectives have been achieved / previous objectives were unrealistic [k] at the bakery [app]
- Change of owners/managers [k] over the last 3 years [app]
- Changes in the government objectives/legal controls [k] affecting secondary sector businesses [app]
- Change in customer preferences / demand / follow new trends [k] so may need more/less than 6 employees [app]
- Change in competition [k] which may be why want to business to expand [app]
Other appropriate responses should be credited.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- Bakery
- Pastries/cakes
- Small (business)
- 3 years
- Secondary sector
- 6 employees
- Expand/expansion
Other appropriate examples can be credited.
1.5. Business objectives and stakeholder objectives question 2
[Maximum number: 2]
FSW is a multinational company with operations in 6 countries. It manufactures steel for use in the construction industry. Quality assurance is used to ensure quality production. FSW has many stakeholder groups who are interested in its activities. The Managing Director knows FSW's business creates external costs. She is aware that pressure groups try to influence business decisions.
Identify one objective each of the following stakeholder groups might have:
Employees:
Customers:
Award 1 mark per objective (max 2).
Points might include:
Employees:
- Increased pay/wages/fair wages/regular pay
- Better/safe working conditions
- Access to training
- Job security
- Have contract of employment
- Work provides motivation / opportunities for promotion / improved status / job satisfaction
Customers:
- Safe/reliable products
- Value for money/reasonable prices
- Well-designed/good quality products
- Reliable/good service
Other appropriate responses should be credited.
Only award first response given for each stakeholder group.
All question bank results loaded